Differences in used car price guides

[crw]

What methodologies do various companies use to determine a used car price?

When I look at Edmunds, NADA, and KBB, there is typically a 15% difference between Edmunds (low) and KBB (high), while NADA is usually a little bit under KBB. This is with careful consideration of all options, mileage, condition, etc., and also considering whether the sale is Private Party or Dealer.

That 15% can be a few thousand dollars in difference. Usually when I hear an ad saying "Below KBB value!" I think,... "So what? Why would I pay those prices?"

What other sources or methodologies do you use to determine a used car price?

 

[Quattro Pete]

Good question. I'd like to know where that 15% spread comes from as well.

Personally I use Edmunds TMV more often than KBB. I find Edmunds to be more realistic.

 

[needsducktape]

personally, I don't go by ANY guides. Its case by case in the used car world...

But if you are looking to sell your car. I would search for your car on craigslist. Year, model etc. See what other cars are selling for and price it accordingly. Use Ebay to get an idea of what they go for nationwide. (My Ducati was rare enough that someone traveled 900+ miles and oddly, no one local would make an offer close to my asking price)
If you are in a hurry to sell make sure you are a few hundred $$$ lower than anyone else...

If you are looking to buy -same thing. Search ebay nation wide and then get the local prices via craigslist.

A car/bike is only worth what someone is willing to pay. -and sometimes people overpay (1996-2000+ Honda civic seems to be the easy example of that one)

Just my .02

 

[Smoky14]

I would like to know why my car is worth less when I sell it compared to a dealer selling it. Normally my cars are in better shape than those found at a dealer.

YMMV

 

[surfstar]

Cash talks

 

[Jeffy_D]

In my area, kbb is the holy bible of car prices. Some banks and smaller dealers use NADA, no one uses edmunds.

Personally, i use the guides to get a general idea of what loan value could be on a certain vehicle if im not paying cash.

 

[mrplavick]

Dealers use KBB because it benefits them (i.e. higher prices). I've heard but can't confirm that KBB is based on surveys of ASKING prices, not final sale prices.

The NADA guide that a bank uses is most accurate for a buyer. Banks do all they can to not lend more than a car is truly worth.

Normally the local public library has it in their reference section.

 

[KitaCam]

While not an explanation...
I expect to sell a car at the low end of the valuation, and when buying I expect to pay at the higher end...

 

[crw]

Originally Posted By: mrplavick
I've heard but can't confirm that KBB is based on surveys of ASKING prices, not final sale prices.


This, if true, would explain a lot.

 

[fisher83]

All of those tools are just designed to give you a ballpark figure. When I worked in car sales we looked at NADA but the offer ultimately was based on auction data. The dealers have a computer system where they can see what similar vehicles sold for at auction and usually won't pay more than that amount. If they do, it is because they are padding the trade in. That simply means that they eat a little bit of the profit from the new car and add that amount to your "trade allowance". If you want $10k for your $8k car and you get it, don't think you pulled one over on the dealer. That other $2k is in there somewhere.

 

[surfstar]

Originally Posted By: KitaCam
While not an explanation...
I expect to sell a car at the low end of the valuation, and when buying I expect to pay at the higher end...


I do vise versa.

 

[KitaCam]

Originally Posted By: surfstar
Originally Posted By: KitaCam
While not an explanation...
I expect to sell a car at the low end of the valuation, and when buying I expect to pay at the higher end...


I do vise versa.


I'm not saying I actually conform to those expectations....I just don't want to get my hopes up unrealistically...in fact, my last buy (kitacam) was bought from a dealer at the trade-in-value (KBB), for a car in very good condition (Edmunds "clean" TiV was $500/8% lower, but with a new clutch it was better than "clean")...I got lucky.

 

[supton]

Originally Posted By: surfstar
Originally Posted By: KitaCam
While not an explanation...
I expect to sell a car at the low end of the valuation, and when buying I expect to pay at the higher end...


I do vise versa.


Likewise; I assume I'll be on the losing end of the deal. Takes the sting out of it. Also keeps me from buying vehicles too often.

 

[KitaCam]

Originally Posted By: supton
Originally Posted By: surfstar
Originally Posted By: KitaCam
While not an explanation...
I expect to sell a car at the low end of the valuation, and when buying I expect to pay at the higher end...


I do vise versa.


Likewise; I assume I'll be on the losing end of the deal. Takes the sting out of it. Also keeps me from buying vehicles too often.


THAT'S WHAT I SAID, or MEANT to say...
I expect to sell low, and have to buy high...but I don't buy often (the last two cars, Altimas, lasted 5 and 10 years with me) so I can be choosey...though as I said, I got lucky this time with Kitacam...

 

[Win]

When I had my car lot and auctions I used NADA, which is what almost everybody else used, including the banks. Once in a while you would see someone using the Black Book, which derived from auctions primarily in the southeast, IIRC.

To me, every used car I was buying was average condition at best, and was worth no more than NADA loan value, if that. Loan value probably is only available with their subscription service.

My recollection of KBB was that it overvalued the dealers cars, and undervalued the customers cars. Maybe it has changed, that's just my recollection.

I don't what Edmunds TMV is.